Comparison of NEMS and RSTEM Demand Elasticities

 

Note

 RSTEM regional demand projections are made by individual, econometric forecasting equations.

NEMS projections are based upon models of detailed technology choices for specific service demands and building types.

 

 

NEMS and RSTEM Elasticities For Residential Sector Electricity Demand

Census Region

RSTEM

Driver #1

Households

RSTEM

Driver #2

Personal Income

RSTEM

Electricity Price

 

NEMS

Driver

Households

NEMS

Electricity

Price

1 NEC

.907

.086

-.196

.581

-.08

2 MAC

.930

.065

-.055

.529

-.08

3 ENC

.994

.005

-.230

.474

-.076

4 WNC

.976

.022

-.460

.414

-.074

5 SAC

.978

.020

-.222

.435

-.074

6 ESC

.984

.015

-.237

.557

-.075

7 WSC

.981

.017

-.172

.493

-.077

8 MTN

.841

-.111(?)

.011(?)

.512

-.076

9 PAC

.895

-.016(?)

.001(?)

.386

-.074

National Elasticity

.956

.012

-.190

.484

-.076

 

 

For residential sector electricity demand RSTEM household and own-price elasticities are generally larger than NEMS.

 

 

NEMS and RSTEM  Elasticities For Residential Sector Natural Gas Demand

Census Region

RSTEM

Nonfarm Wages

RSTEM

Natural Gas

Price

NEMS

Driver

Households

NEMS

Natural Gas

Price

1 NEC

.108

-.098

.848

-.098

2 MAC

.753

-.228

.922

-.088

3 ENC

1.90

-.705

.693

-.087

4 WNC

.079

-.072

.634

-.088

5 SAC

.057

-.052

.640

-.085

6 ESC

.112

-.101

.683

-.088

7 WSC

.114

-.103

.845

-.078

8 MTN

.076

-.088

.745

-.083

9 PAC

.012

-.011

1.05

-.079

National Elasticity

.871

-.323

.694

-.086

 

For residential sector natural gas demand the RSTEM driver and own-price elasticities are generally larger than NEMS.

 

 

NEMS and RSTEM Elasticities For Commercial Sector Electricity Demand

Census Region

RSTEM

Driver 1:

Private Sector Employment

RSTEM

Driver 2:

Private Wages Paid

NEMS

Driver:

Total

Floorspace

RSTEM

Electricity Price

 

RSTEM

Gas

Price

 

NEMS

Electricity Price

 

1 NEC

N/A

.059

.642

-.094

N/A

-.093

2 MAC

N/A

N/A

.636

N/A

N/A

-.106

3 ENC

1.11

N/A

.660

N/A

N/A

-.123

4 WNC

-.048

.597

.784

-.600

-.024

-.115

5 SAC

.768

N/A

.685

N/A

N/A

-.127

6 ESC

.225

.070

.774

-.070

N/A

-.114

7 WSC

N/A

N/A

.690

N/A

-.032

-.125

8 MTN

N/A

.223

.681

-.225

N/A

-.106

9 PAC

-.017

.241

.743

-.243

N/A

-.112

National

.353

.094

.686

-.097

nil

-.115

 

For commercial sector electricity demand the NEMS driver elasticity is generally larger and the own-price elasticity is similar to RSTEM.

 

 

NEMS and RSTEM Elasticities For Commercial Sector Natural Gas Demand

Census Region

RSTEM

Driver:

Private Sector Employment

NEMS

Driver:

Total

Floorspace

RSTEM

Natural Gas

Price

 

NEMS

Natural Gas Price

 

1 NEC*

N/A

.723

N/A

-.183

2 MAC

1.951

.778

-..081

-.178

3 ENC

.316

.749

-.071

-.184

4 WNC

N/A

.792

-.142

-.184

5 SAC

.057

.781

-.034

-.192

6 ESC

.636

.770

-.066

-.181

7 WSC

-.129(!)

.799

-.240

-.175

8 MTN

.559

.754

-.144

-.187

9 PAC

N/A

.781

N/A

-.177

National

.481

.776

-.068

-.185

*Weather was the only RSTEM explanatory variable.

 

For commercial sector natural gas demand both the NEMS driver and own-price elasticities are generally larger than RSTEM.